prepare to ride the financial wave the rest of your life
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Prepare to ride the financial wave the rest of your life . Presented by Floretta E.Reed. How do you get started? Determine the amount needed (short & long term goal) Deduct a certain amount from your payroll or checking account monthly to your savings or money market account. - PowerPoint PPT PresentationTRANSCRIPT
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Prepare to ride the financial wave the
rest of your life Presented by
Floretta E.Reed
265H NATIONAL A-PLUS CONVENTIONAPRIL 2013 1
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How do you get started?Determine the amount needed (short & long term
goal)
Deduct a certain amount from your payroll or checking account monthly to your savings or money market account.
When you receive raise, save it.
When you receive money, save it.23rd NATIONAL APLUS CONVENTION 2
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Develop a BudgetWrite down all of your expenses for the month,
then write down all the money you spend in the month ( you’ll be surprise at how much money you spend unnecessarily).
Develop a budget based on your needs, not your wants.
Pay your self first
Stick to the budget 23rd NATIONAL APLUS CONVENTION 3
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What is your greatest fear regarding your
finances?
▪ Running Out of Money
▪ Inability to Maintain Standard of Living
▪ Health Care
The unexpected
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Set GoalsMaximize Earnings Eliminate Credit Card Debt
◦ Begin with highest interest rate◦ Go to next highest until all are paid off◦ Put that money into your savings
529 Plan for Children & Grandchildren’s College
TaxesMaximize your Thrift Savings (Do not
touch until retirement Penalties
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Savings and Investment Plan
When your reach your savings goals
Invest Variable Annuities/Mutual funds
Learn about the financial system
Invest in the stock market.
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Death Benefit$100,706.29
Total Activity$72,332.25
Estimated Protected
Withdrawal Value
$103,578.66
Surrender Value
$94,034.04
Percentage Increase Over 2 Yrs.
= 43.1%
Average Annual
Return for 2 Yrs = 21.6%
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23rd NATIONAL APLUS CONVENTION 8
Life Insurance PlansTerm Insurance Plans
Universal Life Plans
Whole Life Plans
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FEGLI & Alternative Comparison$250,000 Coverage
AgeFEGLI
PremiumAlternative Premium
Male Female 40 $ 32.50 $ 33.69 $ 28.0045 $ 48.75 $ 51.63 $ 40.2550 $ 75.83 $ 75.03 $ 56.8855 $151.67 $ 89.91 $ 81.8160 $325.00 $142.84 $142.34
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Post-Retirement SavingsBasic Coverage - assuming a basic salary of $50,000.00 at age 55
Coverage Level
Before Age 65
After 65
75% reduction
0.325 =$ 16.79/mo.
NA
50% reduction
0.925 =$ 46.29/mo.
0.60=$30.00
No reduction 2.155 =$107.75
/mo.
1.83=$91.50
Alternative Plan For $50,000.00Male Female
Age 55 $76.46 $64.57
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Learn more about FERS and CSRS◦Educate yourself◦Get summary of plans and benefits
Review your Social Security Statements◦Visit www.ssa.gov
Married couples need to know about each other’s retirement plan◦Get understanding of waivers and consent
forms for spousal disperses and incomes12
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Consider health coverage prior to retirement
Stay informed about changes to health coverage and benefits
Be honest with yourself and spouse/partner
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Consider future home site and cost of living
Capital gains are excluded
Save annual leave Consider retirement date-
3rd of monthMentally adjust to
receiving one payday a month
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Start adjusting to retirement Develop hobbies Take long trips Volunteer Home projects Get involved with local
government Attend town hall meetings Spend time with family
and APLUS15